Here, Open Access Government dive into the world of public sector procurement in this Q&A with Robbie Blackhurst, founder and director of Compliance Chain
What is the current state of public sector procurement? Over the last decade, has it become more competitive, and ensured better value for money for the taxpayer?
‘The landscape of public sector procurement has evolved significantly in recent times. Now, the emphasis is not only on managing upfront costs, but also on making a holistic assessment of value that includes lifecycle costs, environmental sustainability, social impact, and innovation capacity. This shift towards a comprehensive evaluation of value has spurred a more competitive environment, where contractors must demonstrate broader economic, social, and environmental contributions, alongside financial attractiveness.
‘The increased focus on sustainability is evident from the inclusion of Social Value in procurement criteria. What’s more, the importance of social value and community impact is increasingly recognised, with policies mandating the consideration of societal benefits in procurement decisions, inspired by legislation such as the UK’s Social Value Act.
‘The adoption of digital platforms and data analytics has transformed procurement processes, enhancing transparency, efficiency, and informed decision-making. Furthermore, there’s a growing trend towards collaborative procurement, fostering long-term partnerships that encourage shared goals achievement, innovation, and sustainability targets.
‘This evolution in public sector procurement reflects a dynamic shift towards ensuring projects not only offer financial value, but also contribute positively to societal goals, fostering a competitive, transparent, and collaborative procurement environment.’
What are some common examples of misuse and abuse by contractors in public sector procurement, and what are the potential consequences for both the public sector and the public?
‘In the round, contractors tend to tender public sector projects with a ‘straight bat’, particularly when being procured via long standing framework agreements. In isolated instances, misuse and abuse by contractors in public sector procurement can manifest themselves in various detrimental ways. These include substandard performance, pricing inflation, and conflicts of interest. These practices lead to financial losses, undermine project quality and safety, delay essential services, and erode public trust in government institutions.
‘Addressing these issues requires stringent vetting, improved monitoring, and a commitment to transparency and integrity that aims to ensure that procurement processes are fair, competitive, and serve the public interest efficiently.’
How can public sector organisations strengthen oversight and accountability mechanisms to prevent and detect misuse and abuse by contractors during the procurement process?
‘To strengthen oversight and accountability in public sector procurement – particularly in the context of the UK’s new procurement bill – a comprehensive strategy should integrate transparent procurement processes, innovative technologies, stakeholder engagement, and the adoption of performance-based contracts.
‘The new procurement bill, aiming to reform procurement post-Brexit, embodies these principles by proposing a more simplified and flexible regulatory framework. This framework is designed to replace the complex EU-derived regulations, making compliance more straightforward and enhancing standards of transparency and fairness. Key to this reform is the emphasis on making procurement processes more transparent, facilitating easier participation for suppliers, and increasing public understanding of decision-making processes.
‘This integrated approach emphasises simplifying regulatory frameworks, increasing transparency, leveraging technology for better monitoring, and building the capacity of procurement officials. It also highlights the importance of stakeholder engagement and the adoption of performance-based contracts to ensure value for money.
‘By aligning these elements, the bill aims to make procurement more accessible, competitive, and aligned with delivering tangible benefits to the community, effectively addressing risks of misuse, and fostering a more ethical and efficient procurement environment.’
What specific strategies can public sector organisations employ to ensure that procurement processes prioritise social value alongside traditional considerations like cost and quality?
‘Prioritising social value in public procurement marks a shift towards evaluating bids and awarding contracts based not only on cost and quality, but also on their wider economic, environmental, and social impacts. This approach involves a series of strategic steps to embed social value deeply into procurement processes.
‘Firstly, it’s essential to incorporate specific social value criteria into tender documents and procurement guidelines. This action clearly communicates the importance of social value to contractors, encouraging them to devise solutions that offer significant community, environmental, and economic benefits. Alongside this, developing an evaluation framework that assigns substantial weight to social value ensures that these considerations are balanced with cost and quality in decision-making processes. By doing so, contractors are motivated to innovate in ways that contribute positively to societal goals.
‘Equipping procurement teams with the ability to assess social value propositions is another critical component. This can be achieved through targeted training programs and engagement with experts from the social economy sector, enhancing the team’s capability to recognise and reward proposals that deliver meaningful social impact. Moreover, engaging with local communities and stakeholders enriches the procurement process with diverse perspectives, making sure projects align with the real needs and priorities of those affected by their outcomes. This might involve public consultations, or incl community representatives in evaluation panels, fostering a more inclusive approach.
‘Monitoring and reporting on the social value outcomes of procurement activities is vital for transparency and accountability. Establishing clear targets and indicators for social value and regularly assessing progress not only hold contractors accountable but also showcase the public sector’s commitment to broader social goals.’
How do advancements in technology, such as digital procurement platforms and data analytics, support the integration of social value and accountability considerations into public sector procurement practices?
‘Technological advancements have revolutionised public sector procurement, with digital procurement platforms, data analytics, artificial intelligence [AI], Building Information Modelling [BIM], and cybersecurity leading significant improvements in efficiency, transparency, and security.
‘Digital procurement platforms have simplified the tendering process, making it accessible to a broader range of suppliers, and automating bid submissions and evaluations. This has increased competition and streamlined operations. Data analytics empowers decision-making with insights into procurement needs, supplier performance, and market trends, ensuring decisions are strategically aligned with project goals. BIM technology, meanwhile, transforms construction and infrastructure procurement by providing a digital overview of projects, enhancing decision-making, accuracy in cost estimations, and project timelines, thereby reducing risks and improving efficiency.
‘Meanwhile, the emphasis on cybersecurity ensures sensitive procurement data is protected against cyber threats, maintaining the integrity and trustworthiness of the procurement process. Together, these technologies have not just streamlined procurement processes, but have also made them more strategic and secure, paving the way for further innovations and improvements in public sector procurement.’
This piece was written and provided by Robbie Blackhurst, founder and director of Compliance Chain
